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HomeMy WebLinkAbout09-22-2015 Megan Burger - Lease Agreement for Johnson Ranch HouseLEASE AGREEMENT This Lease Agreement ( "Lease "), made and entered into this 2015, by and between the City of San Luis Obispo, State of California, hereinafter referred to as "City ", and Meghan Burger, an individual and employee of the City of San Luis Obispo, hereinafter referred to as "Tenant "; WITNESSETH WHEREAS, City is the owner of certain described real property located in the City of San Luis Obispo, State of California, as more fully described herein; and WHEREAS, the City seeks to rent the certain described real property as a caretaker residence of mutual benefit; and WHEREAS, Tenant is currently an employee of the City of San Luis Obispo; WHEREAS, Tenant is interested in continuing to lease the certain described real property and has been living in it since September 2011. NOW THEREFORE, FOR AND IN CONSIDERATION of the following covenants and conditions, it is hereby agreed as follows: 1. PREMISES 1.1. LEASE OF PREMISES: City hereby leases to Tenant, and Tenant hereby leases from City the residence located at the Johnson Ranch and commonly known as the "Ranch House," and the yard area immediately adjacent thereto, in the County of San Luis Obispo, State of California, as depicted on Exhibit "A," attached and incorporated by this reference, (the "Premises ") upon the terms and conditions set forth in this Lease. The Premises is bordered by the access road on the east and north side, and the creek on the south and west side. The Premises include only the residence and storage shed immediately behind the residence and does not include any of the other real property, structures, buildings, or sheds located adjacent to the Premises. 1.2. ACCEPTANCE OF CONDITION OF PREMISES: Tenant acknowledges, represents and warrants that Tenant has examined the Premises, and that they are at the time of this Lease in good order, repair, and in a safe, clean and tenantable condition. Tenant takes Premises in its AS- IS condition with no express or implied warranties or representations beyond those contained herein, or required by applicable California law. 2. TERMS OF LEASE AGREEMENT 2.1. TERM: The term shall be for one year, commencing on July 1, 2015 and unless earlier terminated as provided herein, terminating on June 30, 2016. Thereafter, the tenancy shall be construed as a month to month tenancy, unless terminated by either party on written notice. This agreement is solely a lease agreement and it shall not be construed as an employment contract between City and Tenant. To comply with Civil Code section 1946.1, if the Tenant separates from employment with City, this Agreement shall terminate sixty (60) days after City delivers notice of termination of the Agreement to Tenant. 2.2. MONTH TO MONTH PROVISION: If Tenant remains in possession of all or any part of the Premises after the expiration of the term hereof, with the express or implied consent of City, such tenancy shall be from month to month only and not a renewal hereof or an extension for any further term and, in such case, monthly rent shall be payable in the amount specified in this Agreement. Such month -to -month tenancy shall be subject to every other provision, covenant, and agreement contained herein. The foregoing provisions are in addition to and do not affect the right of re -entry or any rights of City hereunder or as otherwise provided by law or in equity, and in no way shall affect any right which City may otherwise have to recover damages from Tenant for loss or liability incurred by City resulting from such failure by Tenant to surrender the Premises. Nothing contained in this section shall be construed as consent by City to any holding over by Tenant and City expressly reserves the right to require Tenant to surrender possession of the Premises to City as provided in this Agreement upon the expiration or other termination of this Agreement. In the event Tenant holds over in possession of the premises after termination described above, Tenant shall be obligated to pay the fair market value of the Premises and electricity, namely, $1,100.00 per month plus any annual increases in rent or electricity. This lease may be renewed or terminated at the discretion of the City. 3. RENT 3.1. MONTHLY RENT: Tenant shall pay the sum of $550.00 per month as rent beginning July 1, 2015 with payment due on the first calendar day of each month. After the expiration of the one -year term, City reserves the right to reexamine the fair market value of the rent and to make any other increases it deems necessary, provided City gives Tenant at least sixty (60) days' notice of any such increase. Rent shall be collected as a payroll deduction twice a month. This Agreement constitutes the authorization to begin the deduction. 3.2 RENT REDUCTION FOR CARETAKER SERVICES: The fair market value rent of the Premises is $1,100. The rent has been reduced to $550 in consideration of Tenant agreeing to perform certain caretaking and inspection services on the Premise. Tenant is not entitled to and shall not be paid additional compensation from City for fulfilling the conditions of this Agreement. As a condition of this lease and in consideration of the reduction in fair market rent set forth herein, tenant hereby agrees to perform certain caretaker activities and serve as emergency contact for the Johnson Ranch property. Said activities shall include a weekly walking inspection of the ranch, checking: fence conditions, roads, pond and creeks, cattle grazing, and evidence of unauthorized use. The caretaker is expected to contact anyone who has entered the property and is not authorized to be there. Said activities are estimated to take eight (8) hours a week. Tenant shall not perform these duties during such times as he /she is being paid as an employee of the City. 3.3. TAX CONSEQUENCES: Tenant acknowledges, pursuant to IRS tax regulations, that the difference between the fair market value of the rent and the amount paid is a taxable fringe benefit that will be included on the employee's Form W -2. Tenant agrees to indemnify, defend (upon request by City), and hold City, its elected officials, agents, officers, and employees harmless from and against any and all losses, costs, expenses, claims, liabilities, actions, or damages arising out of any dispute over the tax treatment of the benefits received by Tenant as a result of this Agreement. The taxable fringe benefit amount is $550.00 per month. 4. MAINTENANCE, IMPROVEMENTS, AND REPAIRS: Tenant hereby accepts the Premises in its "as is" condition existing as of the execution date of this Agreement subject to all applicable zoning, municipal, county, state, and other governmental laws, ordinances, and regulations governing and regulating the use of the Premises, and any easements, covenants, restrictions, or other matters of record, and accepts this Agreement subject thereto and to all matters disclosed thereby. City will make improvements and repairs to the Premises when considered necessary by City, including but not limited to the repair of roof and exterior walls of the residence, heaters and water heaters, major repairs to the well pump, replacement of broken plumbing fixtures, and water service pipes to fixtures. City will provide only such additional maintenance as is deemed necessary by City and as required by Civil Code sections 1941 and 1941.1. In the event Tenant encounters a condition which, in his/her view, requires improvement, repair, or maintenance that is not Tenant's responsibility, he /she shall submit a written request to the designated Agent of the City Manager [hereinafter "City's Agent "] to repair such condition. City shall not be obligated to make such repairs unless it deems such repairs necessary to protect the Premises. Should Tenant make any improvements or repairs to the Premises that are the responsibility of City without prior written approval from City's Agent, any such improvement, repair, or replacement costs and expenses shall be borne solely by Tenant, and such improvements shall become the property of City. Tenant is responsible for all minor repairs, including but not limited to clogged drains and toilets, minor well pump repairs, leaky faucets, and broken windows and for all repairs for damage created by Tenant or Tenant's guests. Tenant will properly use and operate all electrical, gas, and plumbing fixtures and keep them as clean and as sanitary as their condition permits. Tenant is responsible to maintain the exterior of the house, including weed abatement and any vegetation clearance necessary for fire protection of the house, and the surrounding grounds in a reasonable manner. Outdoor storage or parking of anything more than two (2) operable vehicles and either one (1) boat, trailer, or recreational vehicle is prohibited. Trash receptacles shall be stored on the Premises outside of public view except on the day of pick -up. 5. UTILITIES: Tenant shall provide for and pay for all charges for electricity and reasonable quantities of well water used for domestic purposes on the Premise. Tenant shall also provide and pay any additional utilities, including but not limited to, propane, trash, septic tank pumping, telephone, cable or satellite television, and internet. 6. OCCUPANTS: Tenant shall not permit anyone other than tenant and his/her immediate family, as designated on the Lease, to reside on the Premises for more than five (5) consecutive days without first obtaining written consent of City's Agent. In any case, there shall not be more than four (4) occupants, including Tenant. 7. ASSIGNMENT: Tenant shall not assign, sublet, or otherwise transfer this Agreement or any portion thereof and any attempt to do so shall be void and of no effect for any purpose and shall furnish grounds for immediate termination of this Agreement. 8. USE OF PREMISES: Tenant agrees to occupy the Premises as Tenant's abode and principal residence and to utilize the portions thereof for living, sleeping, cooking, and dining purposes only and consistent with the purposes for which they were respectively designed or intended to be used for such occupancies: to keep the Premises in a neat, clean, sanitary, and orderly condition at all times during occupancy, and not to permit rubbish, recyclables, garbage, etc., to accumulate at any time; to not commit, suffer or permit any waste of the Premises, nor any acts to be done in violation of any laws or ordinances, nor to use or permit the use of the Premises for any commercial, illegal, or immoral purposes; and to comply with all City laws and local ordinances concerning the Premises and the use thereof. 9. DAMAGES: Tenant waives the right to claim damages from City for any damage resulting to the Premises in the event that it is damaged or destroyed by fire and any other cause. Tenant is hereby advised to obtain his own insurance policy to cover any personal losses. City shall not be responsible for loss of any personal property on the Premises unless such damage or loss is due to City's sole negligence. In the event of damage or destruction which renders the residence uninhabitable or requires repairs in excess of Two Thousand Dollars ($2,000), City shall have the option to terminate this lease, in its sole discretion, without any liability or obligation of City to rebuild or repair. 10. HOLD HARMLESS: Tenant shall indemnify, defend (upon request by City), and hold harmless City, its elected officials, agents, officers, and employees and each of them from and against any and all losses, costs, expenses, claims, liabilities, actions, or damages, including but not limited to liability for: injuries to Tenant's family members, guests, invitees, or other person or persons, or damage to property of Tenant's family members or other persons, or damage to the Premises, arising out of or in any way connected with the use or occupancy of the Premises by Tenant or Tenant's family members, guests, and invitees. Tenant shall not be responsible for any damage to the Premises by open space trail users. City will provide only insurance as is deemed necessary to protect City's interest in the Premises. Tenant may obtain renter's insurance to protect Tenant's personal property, if desired. 11. ENTRY: City or its agents may enter the Premises in the company of the Tenant at reasonable times and upon reasonable notice for the purpose of making necessary or convenient repairs or for inspection of the Premises. In the event of an emergency, City shall have access to Premises at any time when necessary to protect City property where advance notice to Tenant of such access is not practical. 12. BREACH: Noncompliance with provisions of this Agreement shall constitute a material breach thereof and, in addition to any other remedies provided by law or this Agreement in the event of such noncompliance, City shall have the right to terminate this Agreement and any interest created herein, upon written notice, without liability to Tenant. 13. POSSESSORY INTEREST TAX: Pursuant to sections 107 et seq. of the Revenue and Taxation Code, this Lease Agreement may subject Tenant to the payment of a possessory interest tax. If such a possessory interest tax is levied against Tenant, Tenant shall pay any such taxes. 14. GENERAL PROVISIONS: The failure of City or Tenant to insist in any instance on the strict keeping, observance, or performance of any covenant or agreement contained in the Agreement, or the exercise of any election contained in the Agreement shall not be construed as a waiver or relinquishment for the future keeping, observance, or performance of such covenant or agreement, but the same shall continue and remain in full force and effect. If any provision or condition contained in this Agreement shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such provision or condition to persons or circumstances other than those with respect to which it is invalid or unenforceable, shall not be affected thereby, and each and every other provision and condition of this Agreement shall be valid and enforceable to the fullest extent possible permitted by law. This Agreement and the rights and obligations of the parties set forth herein shall be governed by, construed, and interpreted in accordance with the laws of the State of California. The prevailing party in any action filed arising out of the terms of this Agreement or any alleged violation thereof shall be entitled to recover that party's reasonable attorneys' fees and costs incurred in such an action. 15. ADDRESSES: All notices, requests, and letters must be sent to: City Administration Department Assistant City Manager City of San Luis Obispo 990 Palm Street San Luis Obispo, Ca. 93401 Names of persons residing on Premises: MV00 f YUMA �al CfAVIVL, 16. ENTIRE AGREEMENT: This Agreement constitutes the sole and entire agreement between the parties with respect to the subject matter hereof. This Agreement correctly sets forth the obligations of the parties hereto to each other as of the date of this Agreement. All agreements or representations respecting the subject matter of this Agreement not expressly set forth or referred to in this Agreement are null and void. 17. CHANGE OF TERMS: The terms and conditions of this agreement are subject to future change by City after the expiration of the Lease period upon 30 -day written notice setting forth such change and delivered to Tenant. Any changes are subject to laws in existence at the time of the Notice of Change Of Terms. 18. DISCLOSURES: 18.1 MEGAN'S LAW NOTICE: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offender's criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides. 18.2 LEAD HAZARD DISCLOSURE: Housing built before 1978 may contain lead -based paint. Lead from paint, paint chips, and dust can pose health hazards if not managed properly. Lead exposure is especially harmful to young children and pregnant women. Before renting pre - 1978 housing, lessors must disclose the presence of known lead -based paint and /or lead -based paint hazards in the dwelling. Lessees must also receive a federally approved pamphlet on lead poisoning prevention. Tenant acknowledges that City has provided Tenant with Lead Based Paint Disclosure Fork and EPA Pamphlet entitled "Protect Your Family From Lead in Your Home." 19. ATTORNEY'S FEES: If any legal action or proceedings be brought by either party of this Lease, the prevailing party shall be reimbursed for all reasonable attorney's fees and costs in addition to other damages awarded. IN WITNESS WHEREOF, the parties hereto set their hands the day and year opposite their signatures. CITY: r By: L �F°� Katie g, Cj anager ''----A,TTES 4 r -A ony J. Mejia, City Clerk 10Zf)S Date Date Jc) °.r 1s AT NANT: a2..� JAI Me urger Date APPROVED AS TO FORM: Christine Dietrick, City Attorney Date I.' �/ -L !17-- a Manager p• Final City Manager Approval Approver Name Date Approved City Administration James David for Derek Johnson 09/15 Reviewer Routing List Reviewer Name Date Reviewed City Attorney's Office Human Resources Finance & Information Technology Jon Ansolabehere M. Irons Wayne Padilla _ 9/2/15 9/9/15 9/2 August 25, 2015 FROM: Michael Codron, Assistant City Manager Prepared by: James David, Principal Analyst Robert A. Hill, Natural Resources Manager SUBJECT: LEASE AGREEMENT FOR JOHNSON RANCH HOUSE RECOMMENDATION Approve the lease of the Johnson Ranch House by Recreation Supervisor Meghan Burger for Fiscal Year 2015 -16. DISCUSSION In December 2001, the City acquired the Johnson Ranch Open Space. The ranch is located southwest of the City at the lower Higuera freeway off ramp. The ranch contains a viable older house. Immediately adjacent to the house, there are several historic farm structures in various states of repair comprising the premises. The ranch house is approximately 1,000 square feet in area, has two connected bedrooms, a living room, a kitchen, and a bathroom. The hiking trails on the Johnson Ranch have been open to the public since 2008. However, there is currently no public use for the ranch house and adjacent structures. If no one were living at the ranch, there is concern that it could fall into disrepair or become an attractive location for parties or for transient individuals to take up residence. In the past, prior to the leasing of the property, patrolling Rangers noted that individuals had gained entry to the ranch house. Houses in open space. Public agencies often acquire open space properties that were previously farm or ranch properties with one or more homes. The Monterey Peninsula Regional Park District, for example, owns four old ranch houses. Typically, open space agencies place staff in these houses as tenants and oftentimes as on -site reserve managers. The rent agreements vary, depending on the arrangements. They generally fall into three categories: